The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) REPORT NO.: RES43610 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CO PLAN PAZCIFICO:WATER SUPPLY AND BASIC SANITATION INFRASTRUCTURE AND SERVICE DELIVERY PROJECT APPROVED ON OCTOBER 18, 2016 TO FTSP, REPRESENTED BY ITS FIDUCIARY AGENT AND TRUSTEE FIDUCIARIA LA PREVISORA, S.A. (FIDUPREVISORA) WATER LATIN AMERICA AND CARIBBEAN Regional Vice President: Carlos Felipe Jaramillo Country Director: Ulrich Zachau Regional Director: Anna Wellenstein Practice Manager/Manager: David Michaud Task Team Leader(s): Karen Priscila Navarro Rios, Alexandra Ortiz The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) ABBREVIATIONS AND ACRONYMS COVID-19 Coronavirus disease 2019 caused by SARS-COV2 CRAU Environmental Restoration Center (Centro de Restauración Ambiental Urbano) EMCASERVICIOS Municipal Public Services Provider in Cauca (Empresa Caucana de Servicios Públicos) EMGUAPI Municipal Public Services Provider in Guapi (Empresa Municipal de Guapi) ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FIDUPREVISORA Fiduciaria la Previsora, S.A. FINDETER Financiera De Desarrollo Territorial S.A. FTSP Fondo Todos Somos PAZcífico GEMS Geo-Enabling Initiative for Monitoring and Supervision GoC Government of Colombia IPAFCCP Indigenous Peoples and Afro-Colombian Communities Plan IPUF Water loss per subscriber index (Índice de pérdidas por suscriptor facturado) M&E Monitoring and Evaluation MTR Mid-Term Review MVCT Ministry of Housing City and Territory (Ministerio de Vivienda, Ciudad y Territorio) PDO Project Development Objective PIU Project Implementation Unit PTSP Plan Todos Somos PAZcífico RSA Regional Safeguards Advisor SEA/SH Sexual Exploitation and Abuse/Sexual Harassment UNGRD National Disaster Risk Management Unit (Unidad Nacional de Gestión del Riesgos de Desastres) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) BASIC DATA Product Information Project ID Financing Instrument P156239 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 18-Oct-2016 15-Dec-2022 Organizations Borrower Responsible Agency FTSP, represented by its Fiduciary Agent and Trustee National Unit for Disaster Risk Management FIDUCIARIA LA PREVISORA, S.A. (FIDUPREVISORA) Project Development Objective (PDO) Original PDO The objectives of the Project are to improve: (i) coverage and service quality of water supply and basic sanitation in urban areas in the Municipality of Tumaco and the Municipality of Guapi; and (ii) operational efficiency of the service providers in said municipalities. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-86490 18-Oct-2016 07-Mar-2017 26-May-2017 15-Dec-2022 126.70 16.11 110.59 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This Restructuring Paper seeks the Regional Vice-president’s (RVP) approval of a project restructuring for the Colombia Plan PAZcifico Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239). RVP approval is needed because a new safeguards category is being triggered. The proposed restructuring entails adjustments identified during the November 2020 Mid-Term Review (MTR), including: (i) triggering of the Indigenous Peoples safeguards Policy to intervene in areas where indigenous populations are settled; (ii) changes in scope in Components 1 and 2 and transfer of funds among sub-components; (iii) migration to the new Procurement Regulations; and (iv) simplification of the Results Framework. B. Project Background 2. This US$126.7 million operation was approved in October 2016, signed in March 2017, and declared effective in May 2017. The current loan’s closing date is December 15, 2022. The Project is implemented by the National Disaster Risk Management Unit (Unidad Nacional de Gestión de Riesgos de Desastres, UNGRD), which reports to the Presidency of the Republic. 3. The Project focuses on water supply and basic sanitation in the urban areas of the municipalities of Guapi (Department of Cauca) and Tumaco (Department of Nariño). The intervention areas exhibit high levels of poverty and extreme poverty. Basic water supply, sanitation and solid waste services are significantly below national standards. To address these issues and achieve the Project Development Objective (PDO), the Project consists of four components: (i) Component 1 on Water Supply and Basic Sanitation Improvements in the Municipality of Guapi (US$30.90 million); (ii) Component 2 on Water Supply and Basic Sanitation Improvements in the Municipality of Tumaco (US$90.20 million); (iii) Component 3 on Capacity Building and Institutional Strengthening of Service Providers in the Municipalities of Guapi and Tumaco (US$5.40 million); and (iv) Component 4 on Project Management and Environmental and Social Management (US$7.00 million). 4. The Project has a strong support from the Government of Colombia at the national and local government levels, which was confirmed during the November 2020 MTR and demonstrated with the progress made during the past months regarding inter-institutional coordination to deliver Project results. The Project is considered essential to support the Plan Todos Somos PAZcifico (PTSP), which aims at narrowing socioeconomic development gaps in the Pacific Region. The PTSP was developed to address the region’s economic inequality, a necessary action to reduce violence and forced displacement, which are widespread. The Pacific Region is considered one of the most insecure in Colombia, having suffered from armed conflict for over 60 years. C. Status of Project Implementation and Performance to Date 5. The Project’s overall progress towards the achievement of the PDO is currently rated Moderately Unsatisfactory, as achievement of the project’s PDO indicators will not be possible by the current closing date of The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) December 15, 2022. The mid-term review (MTR) analyzed in detail the causes of the delays, such as poor quality of detailed designs of sub-projects, overestimation of capacity of municipalities on land acquisition and an escalation of the security situation in the project area, which delayed the mobilization of contractors. 6. The Project had a slow start and has faced bottlenecks during implementation, which was exacerbated by the COVID-19 sanitary crisis. Impacted by the national quarantine and lockdown declared in March 2020, many procurement processes that had started prior to the declaration of the emergency came to a halt and works were unable to proceed. In May and June 2020, Colombia began a shift in its response to COVID-19 to focus on a gradual restart of economic activity issuing a series of biosecurity protocols for the renewed opening and operation of various sectors and businesses. Travel by road and airplane was severely restricted for most of 2020, which affected the start of works in both, Tumaco and Guapi. 7. Overall Implementation Progress is currently rated as Moderately Satisfactory. Despite a low current disbursement rate of 13 percent (US$16.11 million), the client has made significant progress with various contracts already signed. As part of an action plan (Annex C) agreed during the MTR, disbursement is expected to improve during the current calendar year, reaching about 32.01 percent. Based on compliance with a set of agreed actions, an extension of the closing date would be granted to allow the project to successfully implement its activities and achieve its planned results and PDO indicators within an extended implementation period. These actions include (see Annex C for details): (i) the completion of the bidding documents for the sanitation pilots in Guapi and Tumaco under turnkey contracts and the further issuing of the Bank No Objection; and (ii) consultancies in place for the Sewage Master Plan in Guapi and Tumaco. Altogether these contracts add up to approximately US$20 million. It is expected that these milestones will be reached during fall 2021 when the merits of the extension will be re-assessed. 8. Implementation has made significant improvements. Works for water supply in Guapi and Tumaco have been contracted and are under execution. Studies for designs of sewer and in-situ sanitation solutions for both municipalities are underway. Consultancies for the first phase of institutional strengthening plans in both municipalities have been completed and those for the second phase are being procured. The UNGRD has established a Project Implementation Unit (PIU) with two decentralized offices in Guapi and Tumaco staffed with specialists in environment, social development, communications, procurement, financial management, and security and in the technical areas of water, sanitation and solid waste management. More details can be found in Annex A. 9. The performance and capacity of the PIU and its two decentralized offices are both satisfactory. PIU staff have received training in many topics including: procurement, project management, environmental and social safeguards, solid waste management, city wide inclusive sanitation, demand control, and the latest being in Geo- Enabling Initiative for Monitoring and Supervision (GEMS). The latter will enable the PIU to provide remote M&E by making use of open-source tools for field-based collection of structured digital data. 10. Procurement. The UNGRD has faced some difficulties: (i) procurement of studies and works has been a challenge because security issues deterred companies from competing in bidding processes; and (ii) contractors have found it difficult to secure the required insurance policies because of the area's high risk. As a measure to counteract these difficulties, the UNGRD has increased security measures in conjunction with the Bank and the security forces. In this way, it seeks to provide greater peace of mind to contractors. The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) 11. Financial management. The Project complies in terms of financial reporting, it does not have any pending interim financial report or audit report. 12. Remote supervision. In addition to GEMS, the Bank team is exploring other means to do remote supervision such as third-party monitoring and use of remote sensing technology. D. Environmental and Social Safeguards Considerations 13. The project was approved with an ESMF ensuring compliance with World Bank’s 2016 safeguard policies, rated Category A. At the time of approval, the Indigenous Peoples (OP/BP 4.10) safeguard policy was not triggered because it was envisioned that all activities were to take place in urban areas, however, some of the proposed activities upon restructuring are located in rural areas inhabited by indigenous groups (see paragraph 18). The ESMF will be updated to reflect the new scope of the project, lessons learned, new environmental and social legal framework and institutional context, communication plans, and reflect triggering the OP/BP 4.10 safeguard policy. It will also reflect current issues and challenges related to COVID-19, SEA/SH, discrimination, migrant and vulnerable populations, gender, among others. The updated ESMF will be disclosed by November 1, 2021. 14. Safeguards performance. The PIU continues to comply satisfactorily with the environmental and social safeguards’ requirements, as corroborated during the MTR in November 2020 and confirmed through constant follow-up between the social and environmental safeguards specialists in the Task Team and PIU. COVID-19 protocols have been adopted for all infrastructure works and these additional costs have been added to the Project’s budget. The Project has an ESMF that focuses on ensuring compliance with World Bank safeguard policies and establishes the specific instruments, procedures and those responsible for environmental and social management. The subprojects count on ESMPs, for the management and control of specific environmental impacts expected during the civil works, which have been prepared in accordance with the ESMF. The Borrower has identified and managed the environmental permits required by the environmental authorities and issuing of permits is well documented in the ESMPs. Within the bidding processes for consulting, works, and works supervision, the PIU has incorporated environmental and social requirements established in the ESMF. The PIU has a team of qualified professionals to guarantee the supervision and monitoring of the environmental and social management required by the Project as established in the ESMF. The Project has submitted timely follow-up progress reports reflecting the presence and effort of an Environmental and Occupancy, Health and Safety (OHS) team in the field in both municipalities. 15. Implementation of the Social Management Plan (SMP). The current progress in the implementation of the SMP under the ESMF includes: (i) Information and Communications Program, (ii) Community Participation Program and Customer Service, (iii) Environmental Education Program, (iv) Interinstitutional Coordination Program, (v) Social Research Program and (vi) Monitoring and Control Program. E. Rationale for Restructuring 16. This restructuring is mainly focused on the triggering of the Indigenous People safeguard policy (OP/BP 4.10) along with adjustments in Components 1 and 2, the Results Framework, and the adoption of the new Procurement regulations, as identified during the MTR. Indigenous People safeguard policy needs to be triggered, given that engineering designs require certain activities to be located in nearby areas inhabited by indigenous groups (more detail in paragraph 18). Adjustments in Components 1 and 2 will allow completion of the water supply systems in the two municipalities and implementing alternative and cost-effective sanitation works to those initially contemplated, The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) which are required by the community due to the urgency of having potable water and the delays in delivery of the final sewer designs for both municipalities. Additionally, waste disposal solutions need to be adjusted due to land tenure issues. The proposed changes to the RF are expected to streamline M&E, reducing the number of indicators, adjust the definition of some of the intermediate indicators, and reflect new targets to reflect changes in scope in some activities. Finally, moving from the old Bank procurement framework to the new Procurement Regulations will help project execution, by allowing the Task Team and UNGRD to work directly in procurement processes, to respond to concerns from firms during procurement and implementation processes, and add non-standard criteria relevant to the safety situation in the Project area in the procurement documents.1 17. The PDO remains unchanged. The restructuring will allow UNGRD to simplify project activities, to intervene in close- by rural areas which have been deemed the only possible technical options to expand crucial parts of the water and sanitation systems needed, to better calibrate procurement risk and to allow the Bank to be more involved in contract management of high value procurement processes. This will all contribute to improve project implementation and help achieve the PDO. II. DESCRIPTION OF PROPOSED CHANGES 18. Triggering of the Indigenous People (OP 4.10) safeguard policy. Indigenous People safeguard policy needs to be triggered, given that engineering designs require certain activities to be located in nearby areas inhabited by indigenous groups. The update of the social assessment and ongoing design studies have revealed that indigenous communities could be directly or indirectly affected by the planned activities. The site of the transitional solid waste disposal cell in the municipality of Guapi is located nearby the Eperara Siapidara indigenous community (41 families) in the Nueva Bellavista and Partidero Reservation (covering 50 hectares totaling 524 families and bordering with the afro-collective territory of the Guapi Abajo Community Council). On the other hand, in Tumaco, one of the introversions to optimize and expand the water supply system will be carried out near the sidewalks of Bucheli, Brisas del Acueducto, Nueva Reforma, Descolgadero and Guapin neighborhoods. Given the presence of indigenous and Afro-Colombian populations in these areas, the Indigenous Peoples (OP 4.10) needs to be activated and in that sense UNGRD has prepared the Indigenous Peoples and Afro-Colombian Communities Plan (Plan para Pueblos Indígenas y Comunidades Afrocolombianas, IPAFCCP) in a participatory manner and through meaningful consultations. The instrument was adopted by the Borrower, through UNGRD, and disclosed on the Bank’s website on December 17, 2020. 19. Change in scope in Project water supply and sanitation activities under Components 1 and 2. Investments in water supply activities will increase to reach 100 percent of the population in both municipalities, while cost- effective sanitation solutions already approved by the water supply and sanitation regulatory agency will be implemented to cover part of the population. The scaling up of the water activities responds to a community request due to the urgency of having potable water. This will also imply reallocation of funds between sub- components. More details can be found in Annex B. 20. Change in scope of solid waste management solutions under Components 1 and 2. Due to the impossibility of acquiring land to implement a final solid waste disposal solution in the intervention areas, the strategy is to 1The Regulations, as a part of the new procurement framework, have four key innovations to support the project execution: (i) needs and risks of a project are analyzed through a Project Procurement Strategy for Development, (ii) value for money has been introduced as a core procurement principle in all procurements financed by the World Bank, (iii) the approach to resolving procurement-related complaints has been significantly improved with capacity to promptly respond to any concerns during the procurement process, and (iv) the World Bank will be more involved in contract management of procurements with high value and high risk to ensure the best possible outcomes and that problems are resolved quickly The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) implement a phased-approach focusing on solid waste management. The specific proposed changes are detailed in Annex B. 21. Migration to the new Procurement Regulations. The proposed change is to make the transition by the Project from the application of the Procurement and Consultant Guidelines to the Procurement Regulations for IPF Borrowers. This change was requested by the UNGRD, which is also implementing the Waterway Connectivity Project under the new Procurement Regulations.2 The UNGRD has already prepared a Project Procurement Strategy for Development and a Procurement Plan,3 which were reviewed and cleared by the Bank on December 18, 2020. 22. Simplify the Results Framework. The change will streamline monitoring and evaluation, reducing the number of PDO indicators from 7 to 4 and intermediate indicators from 15 to 12, adjusting the definition of some of the intermediate indicators and reflecting new targets to reflect changes in scope in some activities. Indicators corresponding to component 4 have been marked for deletion to avoid double efforts, given that all its indicators are measured by the ESMF. 23. Considering the scope and purpose of the activities proposed in the restructuring, the ESMF will be updated to reflect the new scope of the project, updating the environmental normative and institutional context, COVID- 19 considerations , SEA/SH, discrimination, gender, updated communication plans, and triggering of safeguard policy OP/BP 4.10, as confirmed with the Regional Safeguards Advisor. The scope of the restructuring includes adjustment to studies and designs of the water supply and sewerage sub-projects of the municipalities of Guapi and Tumaco; however, the general objective of these sub-projects will not be modified, nor are the new activities foreseen to be significantly different than those in the ESMF approved in 2016. As described in paragraph 20, for the urban solid waste activities, the scope of the project will no longer include the construction of new sanitary landfills. The ESMF contemplates the proposed new activities including the implementation of a Social Inclusion Plan for recyclers. The proposed new solid waste management activities are covered by the Regulatory Framework described in Annex 1 of the 2016 ESMF. The new activities are expected to result in minor civil works and intervention of sites, and similarly, environmental impacts are considered to be less complex and lower in magnitude, predictable and expected to be temporary and reversible than the original activities before restructuring. Project activities will require the formulation of environmental and social management instruments established in the ESMF; prior to implementation, a No Objection from the World Bank will be needed. No new type of environmental or social instruments are needed for the proposed changes, and in the case of the closure of the open dump in the municipality of Guapi, the activities will be developed applying the guidelines established in Annex 8 of the ESMF called "Closure and Decommissioning of Landfills." The ESMF will be updated to reflect current environmental and social baselines, new environmental normative and institutional context, and new communications plans that encompass the new scope and as they relate to the Indigenous Peoples and Afro- Colombian Communities Plan. It will also reflect current issues and challenges related to COVID-19, SEA/SH, discrimination, migrant and vulnerable populations, and gender. 2 The UNGRD is also the PIU for Enhancing Waterway Connectivity and Water Service Provision in Colombia’s Plan Pazcifico (P156880), which was approved in 2017 under newer procurement regulations: The World Bank Procurement Regulations for IPF Borrowers, July 2016, revised November 2017 and August 2018 that apply to all Projects with Concept Notes after July 1, 2016. 3 The Procurement Regulations will only apply to contracts procured after the countersignature of the amendment letter. All procurement processes that started before that date will continue under the Procurement and Consultant Guidelines. The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Disbursement Estimates ✔ Safeguard Policies Triggered ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Social Analysis ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ APA Reliance ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1. Water Supply Component 1. Water Supply and and Basic Sanitation Basic Sanitation Improvements in 30.90 Revised 30.90 Improvements in the the Municipality of Guapi Municipality of Guapi Component 2. Water Supply Component 2. Water Supply and and Basic Sanitation Basic Sanitation Improvements in 90.20 Revised 90.20 Improvements in the the Municipality of Tumaco Municipality of Tumaco Component 3. Capacity Building Component 3. Capacity and Institutional Strengthening Building and Institutional of Service Providers in the 5.40 Strengthening of Service 5.40 Municipalities of Guapi and Providers in the Municipalities Tumaco of Guapi and Tumaco Component 4. Project Component 4. Project Management and Management and Environmental 7.00 7.00 Environmental and Social and Social Management Management TOTAL 133.50 133.50 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 2,529,999.99 571,361.43 2018 11,120,000.04 1,577,460.48 2019 24,410,000.04 1,238,906.00 The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) 2020 36,420,000.00 6,871,006.84 2021 30,840,000.00 24,901,338.00 2022 17,079,999.96 36,176,393.00 2023 4,300,000.02 55,363,534.00 OPS_DETAILEDCHANGES_COMPLIANCE_TABLE COMPLIANCE Safeguard Policies Safeguard Policies Triggered Current Proposed Environmental Assessment (OP) (BP 4.01) Yes Yes Performance Standards for Private Sector No No Activities OP/BP 4.03 Natural Habitats (OP) (BP 4.04) Yes Yes Forests (OP) (BP 4.36) Yes Yes Pest Management (OP 4.09) No No Physical Cultural Resources (OP) (BP 4.11) Yes Yes Indigenous Peoples (OP) (BP 4.10) No Yes Involuntary Resettlement (OP) (BP 4.12) Yes Yes Safety of Dams (OP) (BP 4.37) No No Projects on International Waterways (OP) (BP Yes Yes 7.50) Projects in Disputed Areas (OP) (BP 7.60) No No . The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) . Results framework COUNTRY: Colombia CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project Project Development Objectives(s) The objectives of the Project are to improve: (i) coverage and service quality of water supply and basic sanitation in urban areas in the Municipality of Tumaco and the Municipality of Guapi; and (ii) operational efficiency of the service providers in said municipalities. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 to improve coverage and service quality of water supply and basic sanitation in Guapi and Tumaco Direct project 0.00 0.00 0.00 0.00 0.00 0.00 108,999.00 144,314.00 beneficiaries (Number) Action: This indicator has been Revised Poor beneficiaries 0.00 0.00 0.00 95.00 95.00 95.00 95.00 95.00 (Number) Action: This indicator has been Marked for Deletion Female beneficiaries 0.00 0.00 0.00 50.00 50.00 50.00 50.00 50.00 (Percentage) People provided with access to improved water 0.00 108,999.00 144,314.00 sources (CRI, Number) Action: This indicator is New The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 People provided with access to improved water sources - 0.00 54,500.00 72,177.00 Female (RMS requirement) (CRI, Number) Action: This indicator is New Guapi (Number) 0.00 9,070.00 23,745.00 Action: This indicator is New Tumaco (Number) 0.00 97,604.00 120,569.00 Action: This indicator is New People provided with access to ‘improved sanitation facilities” 0.00 0.00 0.00 0.00 0.00 0.00 21,395.00 44,728.00 under the proj. (CRI, Number) Action: This indicator has been Revised People provided with access to “improved 0.00 0.00 0.00 0.00 34,594.00 76,546.00 84,157.00 85,554.00 sanitation facilities” - urban (Number) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion Guapi (Number) 0.00 11,395.00 11,395.00 Action: This indicator is New Tumaco (Number) 0.00 10,000.00 33,333.00 Action: This indicator is New Number of people in urban areas provided with access to Improved 0.00 0.00 0.00 25,131.00 70,539.00 84,348.00 86,522.00 67,694.00 Water Sources under the project (Number) Action: This indicator has been Marked for Deletion Untreated sewage discharge points to water bodies eliminated under 0.00 0.00 0.00 0.00 17.00 65.00 100.00 100.00 the Project (percentage) (Percentage) Action: This indicator has been Marked for Deletion to improve operational efficiency of the service providers in Guapi and Tumaco The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Revenue collection rate in the municipalities of Guapi and Tumaco 39.00 34.00 39.00 43.00 48.00 52.00 56.00 70.00 (percentage) (Percentage) Action: This indicator has been Marked for Deletion Level of non-revenue water in the Municipalities supported 20.60 20.60 19.20 17.30 15.50 13.60 11.90 10.00 by the Project (m3/conn/month) (Cubic Meter(m3)) Action: This indicator has been Marked for Deletion Water supply continuity in the Project'€€s 7.00 7.00 19.00 intervention area (Hours/day) (Hours) Action: This indicator has been Revised Guapi (Hours) 2.00 8.00 12.00 18.00 Action: This indicator is New Tumaco (Hours) 6.00 9.70 15.00 20.00 The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Component 1. Water Supply and Basic Sanitation Improvements in the Municipality of Guapi New piped household water connections that are resulting from the 0.00 14,707.00 project intervention (Number) Action: This indicator has been Marked for Deletion New piped household water connections that are resulting from 0.00 11,996.00 the project intervention in Tumaco (Number) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion New piped household water connections that are resulting from 0.00 2,711.00 the project intervention in Guapi (Number) Action: This indicator has been Marked for Deletion Water quality risk for human consumption in High Risk No Risk Guapi (IRCA index) (Text) Action: This indicator has been Marked for Deletion Level of non-revenue water in Guapi 25.00 10.00 (m3/conn/month) (Cubic Meter(m3)) Action: This indicator has been Marked for Deletion New piped household water connections that 0.00 38.00 100.00 are resulting from the The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 project intervention (Percentage) Action: This indicator is New New household sewerage connections that are 0.00 48.00 48.00 resulting from the project intervention (Percentage) Action: This indicator is New Treatment and/or utilization of urban solid 0.00 1.50 2.00 2.00 waste (Metric tons/year) Action: This indicator is New Area in the municipality that has been sanitized 0.00 5,000.00 5,000.00 11,000.00 (Square Meter(m2)) Action: This indicator is New Component 2. Water Supply and Basic Sanitation Improvements in the Municipality of Tumaco Piped household water connections that are benefiting from 0.00 11,472.00 rehabilitation works undertaken by the project (Number) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion Piped household water connections that are benefiting from rehabilitation 0.00 10,909.00 works undertaken by the project in Tumaco (Number) Action: This indicator has been Marked for Deletion Piped household water connections that are benefiting from rehabilitation 0.00 563.00 works undertaken by the project in Guapi (Number) Action: This indicator has been Marked for Deletion New household sewer connections constructed 0.00 18,712.00 under the project (Number) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion New household sewer connections constructed under the 0.00 15,783.00 project in Tumaco (Number) Action: This indicator has been Marked for Deletion New household sewer connections constructed under the 0.00 2,929.00 project in Guapi (Number) Action: This indicator has been Marked for Deletion Level of non-revenue water in Tumaco 19.90 10.00 (m3/conn/month) (Cubic Meter(m3)) Action: This indicator has been Marked for Deletion New piped household 0.00 18.00 54.00 water connections that The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 are resulting from the project intervention (Percentage) Action: This indicator is New New household sewerage connections that are 0.00 8.00 26.00 resulting from the project intervention (Percentage) Action: This indicator is New Increase in the useful life of the final waste 0.00 2.00 6.00 disposal site (Years) Action: This indicator is New Treatment and/or utilization of urban solid 0.00 1.00 2.00 2.00 waste (Metric tons/year) Action: This indicator is New Component 3. Capacity Building and Institutional Strengthening of Service Providers in the Municipalities of Guapi and Tumaco Institutional and Operational Model for No Yes Guapi developed and in implementation. (Text) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion Adequate municipal solid waste disposal capacity 72.00 95.90 (tons/day) (Metric tons/year) Action: This indicator has been Marked for Deletion Adequate municipal solid waste disposal capacity in Tumaco 72.00 87.00 (tons/day) (Metric tons/year) Action: This indicator has been Marked for Deletion Adequate municipal solid waste disposal capacity in Guapi 0.00 8.90 (tons/day) (Metric tons/year) Action: This indicator has been Marked for Deletion Micro-metering coverage 33.00 95.00 in the Project s The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 intervention area (percentage) (Percentage) Action: This indicator has been Marked for Deletion Micro-metering coverage in the Project s 39.00 95.00 intervention area in Tumaco (Percentage) Action: This indicator has been Marked for Deletion Micro-metering coverage in the Project s 0.00 95.00 intervention area in Guapi (Percentage) Action: This indicator has been Marked for Deletion Loss index by billed customer (IPUF index) in 25.00 10.00 m3/subscriber/month (Cubic Meter(m3)) Action: This indicator is Rationale: New The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 This indicator is included under operational efficiency, in favor of non-revenue water. IPUF is an indicator that is used across the country, with recognized procedures by the Ministry of Housing, Communication, and Transport (MVCT) and the national regulator (CRA). Guapi (Cubic 25.00 10.00 Meter(m3)) Action: This indicator is New Tumaco (Cubic 19.90 10.00 Meter(m3)) Action: This indicator is New Public service provision scheme strengthened in No Yes Guapi (Text) Action: This indicator is New Institutional and operational model for basic water supply and sanitation services No Yes developed and implemented in Tumaco (Text) Action: This indicator is New Collection rate in in 15.00 18.00 23.00 32.50 project area (Percentage) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator is New Guapi (Percentage) 4.00 10.00 16.00 30.00 Action: This indicator is New Tumaco (Percentage) 26.00 26.00 30.00 35.00 Action: This indicator is New Installed capacity of potable water in project areas with humanitarian 0.00 409,650.00 409,650.00 support for COVID-19 (Liter) Action: This indicator is New Guapi (Liter) 0.00 153,000.00 153,000.00 Action: This indicator is New Tumaco (Liter) 0.00 256,650.00 256,650.00 Action: This indicator is New Component 4. Project Management and Environmental and Social Management (Action: This Component has been Marked for Deletion) Number of performed meetings for continuous 2.00 30.00 Project communication and feedback executed The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 following the ICPP (Number) (Number) Action: This indicator has been Marked for Deletion Number of people that participated in the meetings for continuous Project 130.00 260.00 communication and feedback executed following the ICPP (Number) (Number) Action: This indicator has been Marked for Deletion Grievances registered related to delivery of project benefits 0.00 95.00 addressed (%) (Percentage) Action: This indicator has been Marked for Deletion Grievances related to delivery of project benefits that are 0.00 0.00 addressed-(number) (Number) The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion IO Table SPACE The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) I. Annexes Annex A. Detailed implementation of components 1. Implementation of the project’s components has advanced as follows: a. Component 1: Water Supply and Basic Sanitation Improvements in the Municipality of Guapi. Works contracts for water house connections and water systems in the Municipality of Guapi (totaling US$3.95 million) are already signed and initiated execution at the end of January 2021. The supervision contract is also in place. Incomplete sewer system designs that were delivered by the local authority will be subject to a review, with an aim to complete the designs and include a demonstration of a sanitation solution for selected areas, for which studies are also ongoing. The urban restoration works and solid waste consultancies to optimize solid waste management have been contracted and began February 2021. b. Component 2: Water Supply and Basic Sanitation Improvements in the Municipality of Tumaco. Works contracts for phases I, II and III of the water systems in the municipality of Tumaco are under execution (totaling US$19.7 million), including the contract for supervision. Starting of the works was planned for March 2020, however, due to restrictions generated by the pandemic, the works initiated in mid-January 2021. Contractors worked with the UNGRD in a bio-security protocol that allows them to enter the project area in a safe way for the workers. Similar to the situation in Guapi, the incomplete designs for sanitation systems prepared by the local authorities will be reviewed and adapted to incorporate the implementation of a sanitation demonstration solution for selected areas. c. Component 3: Capacity Building and Institutional Strengthening of Service Providers in the Municipalities of Guapi and Tumaco. The Project has supported the creation of a new Municipal Public Utility for Guapi (EMGUAPI), with the support of EMCASERVICIOS; and the strengthening of the Public Utility of Tumaco, Aguas de Tumaco. Consultancies to support the first-phase formulation of the institutional strengthening plans of the public utilities in both municipalities have been completed. Procurement of the consultancy services for the second phase is underway. Progress has been made in the reduction of water losses, collection of fees and billing as well as on institutional capacity for risk management. Under this component, the Project is supporting the provision of drinking water to 30,000 people in urban and rural areas outside the network in response to the COVID19 crisis. d. Component 4: Project Management and Environmental and Social Management. This component is advancing satisfactorily. The UNGRD has established a Project Implementation Unit (PIU) with two decentralized offices in Guapi and Tumaco staffed with specialists in environment, social development, communications, procurement, financial management, and security and in the technical areas of water, sanitation and solid waste management. The PIU has an environmental team with two qualified professionals to guarantee the supervision and monitoring of the environmental management required by the Project as established in the ESMF (6.1.2 Institutional arrangement for project management of ESMF). In addition, the PIU has advanced in the procurement processes for works, works supervision, consultancies required for the implementation of the Project. A communication strategy is under implementation and was adjusted after the declaration of sanitary emergency to ensure social distancing. The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) Annex B. Detailed changes to sub-components 1. Change in scope in Project water supply and sanitation activities under Components 1 and 2. Investments in water supply activities will increase to reach 100 percent of the population in both municipalities, while cost- effective sanitation solutions already approved by the water supply and sanitation regulatory agency will be implemented to cover part of the population. The scaling up of the water activities responds to a community request due to the urgency of having potable water. This will also imply reallocation of funds between sub- components. 2. Change in scope of solid waste management solutions under Components 1 and 2. Due to the impossibility of acquiring land to implement a final solid waste disposal solution in the intervention areas, the strategy is to implement a phased-approach focusing on solid waste management. a. Component 1 WSBS Guapi. Changes include: (i) removing investments for solid waste final disposal; (ii) adding investments for the establishment of a temporary cell for solid waste disposal; (iii) adding investments for composting, recycling, and producer environmental responsibility4 activities; and (iv) adding designs and investments to close the open dump at Barrio Olímpico. While the loan proceeds will finance the design studies for the temporary cell for solid waste disposal, EMCASERVICIOS will build the cell with its own funds. b. Component 2 WSBS Tumaco: Changes include: (i) removing investments for the new landfill in Tumaco; (ii) developing technical, feasibility and design studies and investments to optimize and extend the useful life of Tumaco Buchelli’s landfill; and (iii) adding investments for composting, recycling, and producer environmental responsibility activities. 3. Reallocation of funds between sub-components. Changes mentioned in paragraphs 1 and 2 above also imply reallocation of funds between sub-components as shown in table below, and do not affect the legal agreement. Components Current Budget Restructured Budget Component 1. Improvement of WSBS services in Guapi USD 30.837.363 USD 30.837.363 Subcomponent 1.1. Improvement of water supply service USD 10.952.733 USD 11.097.865 in Guapi Subcomponent 1.2. Building a solution for wastewater USD 15.301.730 USD 17.392.761 management Subcomponent 1.3. Improvement of solid waste USD 4.582.899 USD 2.346.737 management Component 2. Improvement of WSBS services in USD 83.427.865 USD 83.427.865 Tumaco 4Colombian legislation allows placement of the responsibility to deal with waste on the producers of the waste (ie. a soda company to assume the responsibility of dealing with plastic bottle waste). The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) Subcomponent 2.1. Improvement of water supply service USD 27.996.665 USD 43.067.193 in Tumaco Subcomponent 2.2. Building a solution for wastewater USD 49.055.748 USD 37.370.905 management Subcomponent 2.3. Improvement of solid waste USD 6.375.452 USD 2.989.767 management Component 3. Capacity building and institutional strengthening for service providers in Gaupi and USD 5.428.116 USD 5.428.116 Tumaco. Subcomponent 3.1. Establishing an adequate service USD 1.963.941 USD 1.820.111 delivery model in Guapi Subcomponent 3.2. Consolidation of the service delivery USD 763.755 USD 1.239.667 model in Tumaco Subcomponent 3.3. Promoting social responsibility USD 436.431 USD 69.000 around service delivery Subcomponent 3.4. Technical studies and knowledge USD 2.263.988 USD 2.299.338 exchange Component 4. Project management and social and USD 7.006.656 USD 7.006.656 environmental management TOTAL USD 126.700.000 USD 126.700.000 The World Bank CO Plan PAZcifico:Water Supply and Basic Sanitation Infrastructure and Service Delivery Project (P156239) Annex C. Action plan Color Key Works selection Works Consulting selection Consultancy Completed selection Exceeds closing date Milestones to be achieved by Oct 2021 *Activities depend on approval of project restructuring.